Lucy Company engaged in the following transactions during Year 1, its first year of operations (Assume all transactions are carh transactions.) 1) Acquired $3,500 cash from issuing common stock. 2) Borrowed $2,450 from a bank. 3) Earned $3,350 of revenues. 4) Incurred $2,450 in expenses. 5) Paid dividends of $450. Total liabilities on Lucy's balance sheet at the end of Year 1 equal: $2,450. $490. $750. ($1,475).